Texaco service stations to be converted to Shell outlets

HOUSTON  About 13,000 Texaco stations will be converted into Shell Oil Co. outlets at a cost of hundreds of millions of dollars during a nationwide rebranding.

One of the largest such moves ever in the energy business coincides with completion of a deal by Shell to take control of a refining and marketing partnership it shares with Texaco Inc.

Last year, executives of Texaco began steps to sell interests in two gas station and refinery joint ventures to Houston-based Shell and another partner for about $2.1 billion, paving the way for completion of Texaco's $38.6 billion sale to Chevron Corp.

Texaco-branded retailers and wholesalers operating 13,000 stations across the country were sent letters on the changes this week, Shell officials said.

Officials said Texaco was required to sell off the stakes in the joint ventures that it held with Shell as a condition of its takeover by Chevron.